"We didn't see any guidance lift but certainly the sales numbers were a couple of per cent better than expected, so presuming we maintain good margin outcomes it gives the potential to surprise on the upside."

BlueScope Steel posted its biggest one-day jump in 18 months, up 32c or 6 per cent to $5.96, after forecasting a 22 per cent rise in full-year profit due to Chinese demand.

"I think effectively what surprised people today was the strength of this year's numbers and the commentary that they're hoping to maintain that level - it's lifted the level of expectations," Mr Ingham said.

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But those positives failed to buoy the market, with the benchmark ASX 200 index closing 8.1 points lower at 3370.7 and the All Ordinaries index down 7.8 points to 3376.1.

Cement maker Adelaide Brighton slumped 30c or 20 per cent to $1.19 and was the most traded stock, as investors headed for the door a day after the Australian Competition and Consumer Commission blocked a planned buyout by Boral.

Boral stock fell 12c to $5.80 although analysts disputed the basis of the ACCC's decision, given difficulties about resolving how to deal with import competition.

Elsewhere, continued fallout from disappointing earnings saw NAB stock slide a further 31c to $28.76. Analysts downgraded their profit expectations for both this year and next.

Other banks were weaker following the release of strong employment numbers, on fears that the Reserve Bank of Australia might be forced to raise interest rates later this year rather than waiting until next year.

Commonwealth Bank was down 16c to $31.20, St George fell 22c to $21.70 and ANZ lost 12c to $18.70.

Building products maker James Hardie lost 22c or 3 per cent to $6.46 after reporting higher annual profit but disappointing investors who had expected a share buyback or a special dividend announcement.

"Hardie's numbers were pretty average," Mr Ingham said. "The stock got caned a bit but I don't think we're going to see material downgrades one way or the other."

Airlines fell strongly on continued concerns over high oil prices, which remain above $US40 a barrel. Qantas was 11c or 3 per cent weaker at $3.26 and Virgin 7c lower at $2.09.

Gold stocks were weaker, with Lihir Gold down 6c at 91c, Newmont Mining 2c to $5.16 and Newcrest lost 26c to $11.

News Corp was 9c higher at $12.78 after US media company Disney announced a strong profit result which boosted sector expectations.